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Edison International (EIX) Beats on Q4 Earnings, Revenues

Edison International EIX reported fourth-quarter 2017 adjusted earnings per share (EPS) of $1.10 from continuing operations, beating the Zacks Consensus Estimate of 93 cents per share by 18.3%. The bottom line also increased 13.4% from 97 cents in the year ago.

Excluding the one-time items, the company reported GAAP loss of $1.67 per share, against the year-ago quarter’s earnings of $1.01.

The company reported 2017 adjusted earnings of $4.50 per share, beating the Zacks Consensus Estimate of $4.32 by 4.2%. Earnings increased 13.4% from the year-ago figure of $3.97 per share.

Total Revenues

Edison International's fourth-quarter revenues were $3,220 million, beating the Zacks Consensus Estimate of $2,878 million by 11.9%. Also, revenues were up 11.7% from the year-ago quarter’s figure of $2,884 million.

Revenues in 2017 came in at $12.32 billion, beating Zacks Consensus Estimate of $12.15 billion. The top line also increased 3.8% from $ 11.86 billion in the year-ago quarter.

Edison International Price, Consensus and EPS Surprise

Edison International Price, Consensus and EPS Surprise | Edison International Quote

Operational Highlights

In the reported quarter, total operating expenses increased 39.6% to $3,236 million, mainly on account of higher purchasing power and fuel expenses (18.9%), operation and maintenance expenses (1.5%), and increased impairment and other charges.

Operating loss was $16 million in the reported quarter.

Interest expenses were $166 million in the quarter, higher than $150 million from the prior-year quarter.

Segment Results

Southern California Edison’s (SCE) fourth-quarter core earnings were $1.15 per share compared with $1.01 a year ago. The bottom line in the reported quarter increased due to higher revenues on account of an escalation mechanism set forth in the 2015 General Rate Case (GRC) decision.

Parent and other segments reported fourth-quarter core loss of 5 cent per share, a penny wider than the year-ago quarter’s loss of 4 cents. The decline reflects lower tax benefits related to stock-based compensation.

Financial Update

In 2017, cash and cash equivalents were $1,091 million, reflecting an increase from $96 million in 2016. Long-term debt was $11.64 billion, higher than the 2016-end level of $10.18 billion.

Net cash from operating activities in 2017 was $3,587 million, compared with $3,256 million in the prior year. Total capital expenditure amounted to $3,828 million during 2017, up $3,734 million from the prior-year quarter.

Guidance

After issuance of a final decision by CPUC on Southern California Edison 2018 GRC, the company will provide 2018 earnings guidance.

Zacks Rank

Edison International carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

American Electric Power AEP reported fourth-quarter 2017 operating earnings of 85 cents per share, beating the Zacks Consensus Estimate of 81 cents by 4.9%.

NextEra Energy NEE reported fourth-quarter 2017 adjusted earnings of $1.25 per share, which lagged the Zacks Consensus Estimate of $1.31 by 4.6%.

Dominion Energy D reported fourth-quarter 2017 operating earnings of 91 cents per share, beating the Zacks Consensus Estimate of 88 cents by 3.4%.

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